Financial activities of a firm is one of the most important and complex activities of a firm. Therefore in order to take care of these activities a financial manager performs all the requisite financial activities.

A financial manger is a person who takes care of all the important financial functions of an organization. The person in charge should maintain a far sightedness in order to ensure that the funds are utilized in the most efficient manner. His actions directly affect the Profitability, growth and goodwill of the firm.

The Roles & Responsibilities of the Financial Manager

Role 1: An EFFECTIVE MEMBER of the MANAGEMENT TEAM

  • Effective leader and supervisor on the management team, meeting own objectives while simultaneously helping other managers achieve their goals.
  • Target and assign all significant responsibilities.
  • Ensure the company’s profitability, liquidity, and solvency; making sure it earns the maximum return on liquid assets and incurs minimum expenses on borrowed capital.
  • Ensure that margins on jobs are maximized through cost recovery.
  • Forecast financial future and anticipate monetary needs of company, maintaining its creditworthiness.
  • Report the company’s financial condition, operations, contingencies, and opportunities accurately and completely.
  • Internal and external financial reporting.
  • Monitor and forecast the company’s financial status.
  • Establish and maintain internal accounting controls.

Role 2: A MOTIVATIONAL ADMINISTRATOR of the FINANCE DEPT

  • Hire, train, and motivate Finance Department employees.
  • Organize and accurately assign responsibilities, gauging the skills of staff members.
  • Ensure that the Finance Department is an asset to all other departments.
  • Use training as a motivational tool to increase the skills of others.
  • Appreciate and encourage the work of staff members, increasing productivity. 

Role 3: A RESPONSIBLE REPRESENTATIVE of YOUR EMPLOYER & LIAISON to CREDITORS

  • Represent company in financial matters, effectively communicating information.
  • Ensure that all company assets are safe from theft and misappropriation.
  • Act on employers’ behalf in general, going beyond technical tasks and financial reporting to include all areas of management.
  • Maintain strong company relationships with banks and sureties.
  • Comply with the terms of agreement between the bank and contractor.
  • Identify competitive rates and fees by researching the competition.
  • Ensure that the company’s project control system is operating properly and that sureties are familiar with it.
  • Establish a strong financial and operational reporting system with sureties.

Role 4: An ADMINISTRATOR RESPONSIBLE for INSURANCE,  INCOME TAX, LEGAL, HR, SAFETY & IT

  • Obtain insurance coverage, such as liability, property, worker’s compensation, and course-of-construction insurance.
  • Manage company’s income tax planning and compliance.
  • Keep track of outstanding litigation.
  • Minimize company’s exposure to liability claims and property damage.
  • Ensure contracts receive the proper review and approval by management.
  • Establish reporting system to ensure contract compliance.
  • Efficient HR administration on a company-wide basis, ensuring employment policies are consistent with applicable laws.
  • Comply with collective bargaining agreements. 
  • Implement aggressive safety management to secure employee and environmental safety.
  • Responsible for company’s IT function, providing IT services to various departments.
  • Work on tasks pertaining to leases, subleases, and property and sales tax returns.
  • Contribute to company profitability via property management.

Role 5: A MODEL of INTEGRITY with HIGH ETHICAL STANDARDS

  • Exercise fair dealing and honest, independent judgment.
  • Avoid conflicts of interest and the appearance of conflicts.
  • Resolve ethical dilemmas with company owners.
  • Disclose issues that affect company to bankers and sureties.
  • Set an ethical standard for coworkers that exceeds legal requirements